A common question from home owners is around when is it the right – or best – time to sell their home.
And truthfully, there is no PERFECT answer, because I don’t have a working crystal ball to determine when you are best to sell & buy your next home.
HOWEVER, there is a really important principle to be aware of when buying & selling real estate which will stand you in good stead once you understand it.
In this short video, I share that principle with you to help you make a better decision for YOU.
This video segment was pulled from a long interview I did back in Feb 2022, where I answered a heap of frequently asked questions (FAQ) about real estate.
Once you’ve watched the video, let me know your thoughts and any extra questions you have on the topic in the comments below.
Note: The video was filmed in portrait mode rather than landscape, which is why it is narrow rather than wide. For the best viewing experience, I recommend you click the Full Screen mode button.
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Okay, so no matter what the market conditions are, at any given time there’s only really a handful of reasons for selling a property anyway.
So, you might be improving the quality of your life, you might be wanting something bigger, something smaller, you might be doing a tree change, a sea change, all those sort of things.
What you have to take into account and the only thing that matters apart from the physical and psychological advantages of why you’re doing what you’re doing, is markets move together.
However, if you are looking at upsizing for instance, so you’re currently in a $600,000 house and you want to buy an $800,000 property so you’re going to move into the next price point you’re there?
What you have to take into account is that in a buoyant market or in a high market or a hot market, if your value has gone up by 10%, you’ve increased by 60,000.
But what you want to buy has increased by 80,000, yeah.
So in essence, you are actually going to have to fund an extra $20,000 gap to make that move in a hot market.
Now, if we look at timing it or waiting until the market conditions are softer, and the market drops by 10% you’re losing far less than what the $800,000 property is and you’re actually be $20,000 ahead in that deal.
So, think of the fact that when you are buying and selling in the market, once you have a property you are only trading in the property you currently have for the property that you want next.
Don’t worry about what the gap is not about bragging rights of what you got for your house, or what you paid for the next one.